Pakistan minister warns of additional PKR 500B taxes if parliament fails to pass enforcement laws

Finance Minister Muhammad Aurangzeb has warned that the government may be compelled to impose additional taxes of up to PKR 500 billion if parliamentarians do not support enforcement-related legislation included in the finance bill.

Responding to journalists' questions during a post-budget press conference, Aurangzeb made a strong appeal to lawmakers to pass the proposed measures, emphasizing their importance in strengthening the tax system.

“People ask whether these reforms will reduce tax revenue,” he said. “Our goal is to broaden the tax base and increase exports. The long-term benefits will outweigh the short-term sacrifices.”

Addressing the controversy surrounding the over 500 percent increase in the salaries of the National Assembly Speaker and Senate Chairman, Aurangzeb defended the hike by noting that federal ministers’ salaries had not been revised since 2016. “After such a long gap, a substantial increase was inevitable,” he remarked.

In response to questions about the 10 percent electricity surcharge, Federal Board of Revenue (FBR) Chairman Amjad Zubair Langrial clarified that no such surcharge has been imposed in the budget. “We are simply seeking legal authority to enable it,” he said.

On the newly announced minimum wage of PKR 37,500, Aurangzeb acknowledged concerns from the private sector and said the government is engaged in dialogue with stakeholders on the issue.

Defending the government's tax enhancement measures in the FY2025-26 budget, particularly the tariff reforms, Aurangzeb reiterated that these steps are aimed at promoting exports. He also noted that while the government wanted to offer more relief to the salaried class, it is constrained by available fiscal space.

Finance Secretary Imdadullah Bosal added that federal expenditure has increased by only 1.9 percent, limited to essential needs.

Earlier, journalists briefly boycotted the press conference in protest over the government’s failure to hold a scheduled technical briefing on the Finance Bill on Tuesday evening.